Applying for a Loan

Applying for mortgage financing can be one of the most troublesome aspects of buying a house for a buyer, but it doesn’t have to be. I’m very well-connected with a lot of lenders in the Carthage area, and they’ve helped me recognize a few things that can make the loan application process a snap.

1 – Compile a list of questions about your loan program

If you don’t totally understand the advantages and disadvantages of the different programs, be sure to have a list of questions. It’s a challenge understanding the characteristics of both fixed and adjustable rate mortgages. I or one of my lenders will be able to assist you with understanding the advantages and disadvantages of both programs.

2 – Decide when you want to lock

Locking in the rate designates that your mortgage lender keeps to the interest rates for the loan – commonly at the time the loan application is presented. By floating the rate, you can lock the rate at any time between the day of your loan application and closing. Those who elect to float presume the interest rates will decline in the near future. Click here to see the outlook for the next 90 days of interest rates.

3 – Decide if you want to pay additional points to lower your interest rate

Normally you can decide to pay additional points to lower the interest rate of your loan. Every point is 1 percent of the mortgage loan and is payable in cash at the time of closing. If you’re uncertain if buying points is the best option for you, click here to use our points calculator.

4 – Compile your paperwork

Obtaining a loan requires lots of paperwork, so you should take some time to get all your documents together.